TSX-V-listed high-grade flake graphite developer Focus Graphite has secured up to $1.3-million in non-repayable federal funding from the Canadian government.

The company on June 3 signed a contribution agreement with Natural Resources Canada under the government of Canada's newly established First and Last Mile Fund, formerly the Critical Minerals Infrastructure Fund, securing up to $1.3-million in non-dilutive federal funding to advance transportation and energy infrastructure planning for the Lac Knife project in Québec.

The funding represents about 50% of the project's total eligible costs, of which Focus Graphite will be providing the balance of.

Focus Graphite says the funding will support the full work programme outlined in the contribution agreement, including feasibility and engineering studies, environmental baseline work, geotechnical and LiDAR surveys, stakeholder engagement, regulatory and permitting activities and detailed infrastructure design.

These activities are expected to culminate in finalised engineering plans, environmental assessments, community approvals and permit applications required to support future construction decisions.

Once completed, these pre-development activities are expected to materially derisk future infrastructure development and significantly advance Lac Knife's pathway toward future construction, development financing, strategic partnerships and operation.

The grant forms part of the Canadian government's recently announced C$3.6-billion critical minerals investment package, which it unveiled at the 2026 Prospectors & Developers Association of Canada convention.

A cornerstone of the package is the First and Last Mile Fund, which is specifically aimed at enabling infrastructure that moves strategic critical mineral projects toward construction readiness.

Focus Graphite CEO Dean Hanisch says the company is delighted to receive this support from the government of Canada, which "recognises the strategic importance of the Lac Knife project to the North American critical minerals supply chain".

As the company advances toward permitting and development, the funding is a strong endorsement of Focus Graphite's role in helping to build a secure domestic supply of high-grade graphite.

Lac Knife is considered one of North America's highest-grade natural graphite deposits. Natural graphite is a foundational material for lithium-ion batteries, advanced manufacturing, energy storage systems and a growing range of defence and dual-use technologies.

Focus Graphite corporate development VP Jason Latkowcer emphasises that the funding will help move Lac Knife from planning to execution, particularly as governments around the world move to secure critical mineral supply chains.

"Early technical work has already identified opportunities to improve access and we expect further optimisation as engineering and infrastructure planning advances. This is another tangible step toward building a strategic graphite asset for Canada and its allies," Latkowcer concludes.